Selected American Shares is one of the nation's premier equity funds. The
Fund seeks companies that may offer opportunities for long-term capital appreciation. Selected American Shares' goal is to create wealth for shareholders over time.*

Investment Philosophy
The Wisdom of our All-Weather Approach
Fund Factsheet
Prospectus

WHAT IS THE FUND'S INVESTMENT PHILOSOPHY?

Consistent with the investment discipline honed by the Davis family for over 50 years, the Fund seeks durable, well-managed businesses that can be purchased at value prices and held for the long term. A considerable amount of time is spent pouring over financial reports and meeting with people who run the companies in which the fund invests. The Fund also focuses on managing risk as the key to delivering reliable long-term investment results.†

A Research-Driven Approach
"Like most portfolio managers, we believe in understanding the financial condition of companies inside and out. Where we gain a competitive edge is by focusing on finding top-quality management teams who respond innovatively to change, have proven records and build their business through a long-term vision. We see our job as separating the doers from the bluffers." Christopher C. Davis, Portfolio Manager

A Strong Price Discipline
"We start with the premise that stocks are not merely pieces of paper but represent true ownership interests in businesses. As a result, our investment process boils down to two simple questions: What kind of businesses do we want to own, and how much should we pay for them? This strict price discipline helps us mitigate risk and can be particularly crucial in volatile markets." Kenneth Charles Feinberg, Portfolio Manager

* Selected American Shares' investment objective is growth of capital. There can be no guarantee that the Fund will achieve its objective.
† Selected American Shares manages risk by adherence to a strict price discipline. Equity markets are volatile and there can be no guarantee that investors will earn a profit. The Fund's net asset value per share will fluctuate and an investor in the Fund may lose money.

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THE WISDOM OF OUR ALL-WEATHER APPROACH TO VALUE INVESTING

To be one of the very best over the long term does not mean you have to be number one every year.

Consider Selected American Shares. As the table below illustrates, Selected American Shares from May 1, 1993-2007 delivered an average annualized return of 12.6%—remarkably outperforming the S&P 500® Index by an average of 2.0% per year.

A hypothetical $10,000 investment in Selected American Shares in 1993 has compounded to $56,892, while a hypothetical investment in the S&P 500® Index over that same time period has compounded into only $43,838.

We have been able to create superior long-term investment results, despite the inevitable and expected fact that other investments may have outperformed the Fund in any particular year.¹

At Selected, we believe that boring can be beautiful.

The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor's shares may be worth more or less than their original cost. The total annual operating expense ratio for Selected American Shares Class S as of the most recent prospectus was 0.90%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance data quoted. For most recent month-end performance, click here or call Selected Funds Shareholder Services at 1-800-243-1575.

The average annual total returns for Selected American Shares for periods ended December 31, 2007 were:

1 Past performance is not a guarantee of future results. Equity markets are volatile and an investor may lose money.
2 Inception date used is the date Davis Advisors took over management of this Fund, 5/1/93.


See endnotes for a description of this chart.

This material is authorized for use by existing shareholders. A current Selected Funds prospectus must accompany or precede this piece if it is distributed to prospective shareholders. You should carefully consider the Fund's investment objectives, risks, fees, and expenses before investing. Read the prospectus carefully before you invest or send money.

The definition of indices quoted in this material appear below. Investments cannot be made in any of these indices:

The S&P 500® Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted toward stocks with large-market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in an index.

Selected American Shares' investment objective is both capital growth and income. In the current market environment we expect that income will be low. There can be no assurance that the Fund will achieve its objective. Selected American Shares invests primarily in common stock of U.S. companies with market capitalizations of at least $10 billion. The most important risks of an investment in Selected American Shares are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; financial services risk: investing a significant portion of assets in the financial services sector may cause a fund to be more volatile; and foreign country risk: companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. As of December 31, 2007, Selected American Shares had approximately 13.9% of assets invested in foreign securities. See the prospectus for a complete listing of the principal risks.

Shares of the Selected Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency and involve investment risks, including possible loss of the principal amount invested.

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